CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
NYSE:CARR - New York Stock Exchange, Inc. - US14448C1045 - Common Stock
Overall CARR gets a fundamental rating of 3 out of 10. We evaluated CARR against 41 industry peers in the Building Products industry. While CARR is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, CARR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CARR was profitable.
In the past year CARR had a positive cash flow from operations.
Each year in the past 5 years CARR has been profitable.
Each year in the past 5 years CARR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CARR (9.31%) is better than 65.00% of its industry peers.
CARR's Return On Equity of 25.47% is fine compared to the rest of the industry. CARR outperforms 75.00% of its industry peers.
The Return On Invested Capital of CARR (7.64%) is worse than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CARR is in line with the industry average of 13.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 25.47% | ||
| ROIC | 7.64% |
ROA(3y)8.01%
ROA(5y)8.27%
ROE(3y)28.56%
ROE(5y)26.48%
ROIC(3y)11.44%
ROIC(5y)10.42%
1.3 Margins
CARR has a better Profit Margin (13.07%) than 72.50% of its industry peers.
In the last couple of years the Profit Margin of CARR has declined.
CARR's Operating Margin of 10.43% is on the low side compared to the rest of the industry. CARR is outperformed by 65.00% of its industry peers.
CARR's Operating Margin has declined in the last couple of years.
The Gross Margin of CARR (27.36%) is worse than 70.00% of its industry peers.
In the last couple of years the Gross Margin of CARR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 13.07% | ||
| GM | 27.36% |
OM growth 3Y5.72%
OM growth 5Y-2.32%
PM growth 3Y-18.69%
PM growth 5Y-15.84%
GM growth 3Y-0.47%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
CARR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CARR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CARR has been reduced compared to 5 years ago.
Compared to 1 year ago, CARR has a worse debt to assets ratio.
2.2 Solvency
CARR has an Altman-Z score of 2.79. This is not the best score and indicates that CARR is in the grey zone with still only limited risk for bankruptcy at the moment.
CARR has a Altman-Z score of 2.79. This is in the lower half of the industry: CARR underperforms 67.50% of its industry peers.
The Debt to FCF ratio of CARR is 14.85, which is on the high side as it means it would take CARR, 14.85 years of fcf income to pay off all of its debts.
CARR has a worse Debt to FCF ratio (14.85) than 85.00% of its industry peers.
CARR has a Debt/Equity ratio of 0.70. This is a neutral value indicating CARR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.70, CARR is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 14.85 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.76
WACC10.08%
2.3 Liquidity
CARR has a Current Ratio of 1.08. This is a normal value and indicates that CARR is financially healthy and should not expect problems in meeting its short term obligations.
CARR's Current ratio of 1.08 is on the low side compared to the rest of the industry. CARR is outperformed by 90.00% of its industry peers.
CARR has a Quick Ratio of 1.08. This is a bad value and indicates that CARR is not financially healthy enough and could expect problems in meeting its short term obligations.
CARR's Quick ratio of 0.82 is on the low side compared to the rest of the industry. CARR is outperformed by 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
CARR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.31%.
Measured over the past years, CARR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.93% on average per year.
Looking at the last year, CARR shows a very strong growth in Revenue. The Revenue has grown by 29.51%.
The Revenue has been growing slightly by 3.16% on average over the past years.
EPS 1Y (TTM)7.31%
EPS 3Y18.04%
EPS 5Y-12.93%
EPS Q2Q%-13.48%
Revenue 1Y (TTM)29.51%
Revenue growth 3Y8.18%
Revenue growth 5Y3.16%
Sales Q2Q%4.41%
3.2 Future
Based on estimates for the next years, CARR will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.12% on average per year.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y-4.15%
EPS Next 2Y6.49%
EPS Next 3Y9.39%
EPS Next 5Y9.12%
Revenue Next Year3.28%
Revenue Next 2Y2.26%
Revenue Next 3Y3.37%
Revenue Next 5Y5%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.10, which means the current valuation is very expensive for CARR.
Based on the Price/Earnings ratio, CARR is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
CARR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.62, CARR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CARR indicates a slightly more expensive valuation: CARR is more expensive than 60.00% of the companies listed in the same industry.
CARR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.1 | ||
| Fwd PE | 22.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CARR indicates a slightly more expensive valuation: CARR is more expensive than 60.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CARR is valued a bit more expensive than 77.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.07 | ||
| EV/EBITDA | 18.22 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.49%
EPS Next 3Y9.39%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.29%.
Compared to an average industry Dividend Yield of 1.05, CARR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, CARR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
CARR has been paying a dividend for over 5 years, so it has already some track record.
CARR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
17.88% of the earnings are spent on dividend by CARR. This is a low number and sustainable payout ratio.
DP17.88%
EPS Next 2Y6.49%
EPS Next 3Y9.39%
CARRIER GLOBAL CORP
NYSE:CARR (1/22/2025, 4:20:03 PM)
After market: 70.03 0 (0%)70.03
-0.52 (-0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners85.61%
Inst Owner Change-0.15%
Ins Owners6.62%
Ins Owner Change0%
Market Cap62.83B
Analysts74.38
Price Target85.71 (22.39%)
Short Float %1.27%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Yearly Dividend0.74
Dividend Growth(5Y)N/A
DP17.88%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.65%
Min EPS beat(2)-8.31%
Max EPS beat(2)1.01%
EPS beat(4)3
Avg EPS beat(4)3.54%
Min EPS beat(4)-8.31%
Max EPS beat(4)19.59%
EPS beat(8)6
Avg EPS beat(8)3.62%
EPS beat(12)10
Avg EPS beat(12)5.76%
EPS beat(16)13
Avg EPS beat(16)6.25%
Revenue beat(2)0
Avg Revenue beat(2)-7.62%
Min Revenue beat(2)-8.93%
Max Revenue beat(2)-6.32%
Revenue beat(4)0
Avg Revenue beat(4)-5.72%
Min Revenue beat(4)-8.93%
Max Revenue beat(4)-3.42%
Revenue beat(8)2
Avg Revenue beat(8)-3.21%
Revenue beat(12)4
Avg Revenue beat(12)-1.94%
Revenue beat(16)7
Avg Revenue beat(16)-0.77%
PT rev (1m)0.9%
PT rev (3m)13.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.63%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-8.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.1 | ||
| Fwd PE | 22.62 | ||
| P/S | 2.2 | ||
| P/FCF | 75.07 | ||
| P/OCF | 45.8 | ||
| P/B | 4.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.22 |
EPS(TTM)2.79
EY3.98%
EPS(NY)3.1
Fwd EY4.42%
FCF(TTM)0.93
FCFY1.33%
OCF(TTM)1.53
OCFY2.18%
SpS31.9
BVpS16.38
TBVpS-8.6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 25.47% | ||
| ROCE | 10.01% | ||
| ROIC | 7.64% | ||
| ROICexc | 8.26% | ||
| ROICexgc | 43.93% | ||
| OM | 10.43% | ||
| PM (TTM) | 13.07% | ||
| GM | 27.36% | ||
| FCFM | 2.92% |
ROA(3y)8.01%
ROA(5y)8.27%
ROE(3y)28.56%
ROE(5y)26.48%
ROIC(3y)11.44%
ROIC(5y)10.42%
ROICexc(3y)14.92%
ROICexc(5y)12.88%
ROICexgc(3y)40.74%
ROICexgc(5y)35.78%
ROCE(3y)15%
ROCE(5y)13.65%
ROICexcg growth 3Y7.26%
ROICexcg growth 5Y-5.22%
ROICexc growth 3Y16.6%
ROICexc growth 5Y1.05%
OM growth 3Y5.72%
OM growth 5Y-2.32%
PM growth 3Y-18.69%
PM growth 5Y-15.84%
GM growth 3Y-0.47%
GM growth 5Y-0.45%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 14.85 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 51% | ||
| Cap/Sales | 1.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 34% | ||
| Profit Quality | 22.37% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.79 |
F-Score5
WACC10.08%
ROIC/WACC0.76
Cap/Depr(3y)93.73%
Cap/Depr(5y)89.32%
Cap/Sales(3y)1.84%
Cap/Sales(5y)1.72%
Profit Quality(3y)99.98%
Profit Quality(5y)90.54%
High Growth Momentum
Growth
EPS 1Y (TTM)7.31%
EPS 3Y18.04%
EPS 5Y-12.93%
EPS Q2Q%-13.48%
EPS Next Y-4.15%
EPS Next 2Y6.49%
EPS Next 3Y9.39%
EPS Next 5Y9.12%
Revenue 1Y (TTM)29.51%
Revenue growth 3Y8.18%
Revenue growth 5Y3.16%
Sales Q2Q%4.41%
Revenue Next Year3.28%
Revenue Next 2Y2.26%
Revenue Next 3Y3.37%
Revenue Next 5Y5%
EBIT growth 1Y45.3%
EBIT growth 3Y14.36%
EBIT growth 5Y0.77%
EBIT Next Year31.79%
EBIT Next 3Y15.9%
EBIT Next 5Y8.2%
FCF growth 1Y-29.19%
FCF growth 3Y12.81%
FCF growth 5Y2.03%
OCF growth 1Y-10.5%
OCF growth 3Y13.13%
OCF growth 5Y3.58%